Buy: Flextronics International
To say that Flextronics International (NASDAQ:FLEX) is a “behind the scenes” name would be an understatement — most investors likely haven’t heard of it. But the corporation will remain busy for a long time, given how many products use its components. You’ll find Flextronics’ stuff in everything from iPhones to diabetes management systems to automobile entertainment systems, and more.
Those who are familiar with Flextronics also know its year-over-year sales have fallen each of the past five quarters. So what’s so great about the company?
Within the past few weeks, FLEX has acquired Motorola Mobility Operations, announced plans to open a medical device design center and unveiled intentions to boost its automotive business in China. The additions and upgrades should gel nicely with its existing business lines.
Given all it has going for it now, not only is the forward-looking P/E ratio of 8.48 incredibly low, but it also suggest the market is really underestimating Flextronics’ turnaround story.
Bonus: FLEX shares appear to have wiggled their way — bullishly — out of a wedge pattern. This should keep the stock throttled for quite some time.